Maryland's Overall Business Climate
Companies were surveyed on their perception of the overall business climate in Maryland, the advantages and disadvantages associated with doing business in Maryland, the steps that they believe are necessary to improve the state’s business climate, and their likelihood of remaining in Maryland.
Maryland’s Business Climate
Companies were asked to rate Maryland’s business climate as pro-business, business-friendly, neutral, unfriendly, or anti-business.
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Overall, firms had a positive view of Maryland’s business climate, with 48% reporting that the state’s business environment is pro-business or business-friendly and only 18% responding that Maryland is either unfriendly to business or anti-business.
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In 2018, 51% of responding firms reported that Maryland’s business environment is pro-business or business-friendly and 16% reported that Maryland was either unfriendly to business or anti-business
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The 2018 and 2019 results represent a significant improvement over 2011, when only 30% reported that Maryland is either pro-business or business-friendly and 35% saying the state is either unfriendly to business or anti-business.
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Firms outside of the I-95 corridor (Other Maryland) have the least positive view of Maryland’s business climate, with 39% rating it pro-business or business-friendly and 32% unfriendly to business or anti-business, and firms in the Washington suburbs have the most positive view, at 53% and 12% respectively.
Advantages to Doing Business in Maryland
Companies were asked to name the most important advantage of doing business in Maryland.
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Sixty percent of firms reported Maryland’s location as its most important advantage. In particular, Maryland’s proximity to the federal government and overall customer/supplier base was seen as the greatest advantage to doing business in the state.
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Seven percent of firms cited Maryland’s business environment as its greatest advantage.
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Seven percent of firms cited Maryland’s strong local market as its greatest advantage.
Disadvantages to Doing Business in Maryland
Companies were also asked to identify the most important disadvantage to doing business in the state.
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Forty-three percent of responding firms reported taxes to be the greatest disadvantage to doing business in Maryland. This is up slightly from 39% in 2018.
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Fifteen percent of businesses cited Maryland’s business environment—which included costs associated with doing business, the business climate, government attitudes towards business, and government agency inefficiency—as the most important disadvantage to doing business in Maryland.
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Eleven percent of firms stated that regulations are the most important disadvantage to doing business in Maryland.
Steps to Improve Maryland’s Business Climate
Companies were asked to provide the single most important step that can be taken to improve Maryland’s business climate, going forward.
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Forty percent of firms cited reducing or reforming taxes as the single most important step that can be taken to improve the state’s business climate.
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Thirteen percent of firms stated that reducing or reforming regulations is the most important step to improve the business climate.
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Thirteen percent of firms reported that expanding or investing in economic development efforts, such as assisting/promoting small business and expanding business incentives, as the most important step to improve Maryland’s business climate.
Business Retention
In an effort to assess the threats of firm’s risk of relocating out of state, firms were asked if they planned on remaining in Maryland or if they were planning on leaving, where they would relocate to and why.
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Ninety-seven percent of firms responded that they would be remaining in Maryland (very likely or just likely), and 3% of firms (26 businesses) reported that it is unlikely or very unlikely they will remain in Maryland.
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Of the 26 of firms that responded that they may be relocating, 21 firms identified the state they are considering moving to, with five considering moving to North Carolina, four to Virginia, three to Florida, and two each Delaware and Texas.
When asked why they would be relocating, seven firms cited business climate factors, five cited taxes, two responded business conditions, and one firm cited cost of living or business opportunities as the reason. Three firms are moving because they were acquired by or merged with an out-of-state firm.
Table 6: How would you rate Maryland's overall business climate? (Q17)
Table 7: What would you say is the single most important advantage of doing business in Maryland? (Q15)
Table 8: What would you say is the single most important disadvantage of doing business in Maryland? (Q16)
Table 9: What would you say is the single most important step that could be taken to
improve Maryland's business climate? (Q18)
Table 10a: Looking ahead, how likely do you think it is that your business will remain in Maryland? (Q39)
Table 10b Location/Reasons for Relocation
